Pakistan authorities drastically lowered the advance income tax for imported mobile phones priced between $101 and $200, according to details provided by the Finance Minister in a written reply to the Senate.
Massive Tax And Levy Reductions
The government cut the advance income tax on this specific category of imported mobile phones by 89.2 percent. The charge dropped from Rs. 930 down to Rs. 100.
Authorities also reduced the mobile handset levy by two-thirds, dropping this charge from Rs. 600 to Rs. 200, which saves importers and buyers Rs. 400 on the levy.
Unchanged Sales Tax Regime
The broader sales tax structure stays the same under the Ninth Schedule of the Sales Tax Act of 1990. SIM card activation still incurs a fixed sales tax of Rs. 250 per SIM.
Other devices outside the $101 to $200 price bracket see no changes. Imported mobile phones valued up to $500 still face an 18 percent sales tax, while premium devices valued above $500 attract a 25 percent rate. Locally supplied mobile devices continue to carry the standard 18 percent sales tax.
The official Senate reply omitted estimates regarding the overall revenue impact. The government also did not state whether these lower levies will result in equivalent price drops for everyday consumers.
